LONDON - Pakistan's sovereign dollar bonds fell as much as 1.25 cents on Monday as rival parties struggled to form a coalition government in the aftermath of contentious - and inconclusive - nationwide elections.

All bonds fell, but the April 2024 lost the most to trade at 95.88 cents on the dollar, Tradeweb data showed.

The two main parties in the debt-laden South Asian country are expected to meet on Monday to try to smooth their differences and enable them to form a coalition government.

The political uncertainty could exacerbate economic instability. Pakistan's leaders must make tough decisions to pull it out of economic crisis.

(Reporting By Libby George, editing by Karin Strohecker)